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Home Loans usually have a long tenor for repayment, and any payment default can lower your credit score. To fund your financial needs during an ongoing Home Loan, you can opt for a Top-Up Loan. Top Up Loans are a form of financial backup for people who have existing Home Loans to be repaid. Top Up Loans are only provided to the applicants with existing Home Loans, which means that you have to apply for a Top Up Loan with the same lender that offered you a Home Loan.
Top Up Loans can be used for various purposes which can be of great help for individuals with Home Loans. Due to the flexibility of funds allocation, a Top Up Loan can be used for the following purposes:
Home construction: When you buy a residential plot with your Home Loan amount, you might fall short on funds while building a proper establishment on it. In such cases, you can use a Top Up Loan to finance the construction of your house which can be paid along with the Home Loan.
Home improvement: Some years after the purchase of a house you might feel the need to make changes in the structure or the looks of the house. These changes can cost you from thousands to lakhs, but with the existing Home Loan, you might consider delaying the idea. In this scenario, you can take the help of a Top Up Loan and make the changes that you desire in your home.
Financing Education: When you take a Home Loan, you try to avoid any other extra expenditure to make sure that the monthly instalments are ready to be paid on time. What if your son who has graduated from college recently expresses his desire to study abroad? Such expenditures cannot be delayed but how would you manage your monthly instalments if you spend your money on your son’s education. You can take the help of a Top Up Loan to fund your son’s education and avoid defaulting on your monthly payments.
Since lenders only offer Top Up Loans to applicants with existing Home Loans, the new lender would offer you Home Loan as well as Top Up Loan with more flexible conditions. For a flexible and reliable balance transfer, you can choose Non-Banking Financial Institution (NBFCs).
A balance transfer can help you manage or rearrange your loans according to your financial conditions, but with the change in the lender, you can avail many benefits. For Top Up Loans, NBFCs like Bajaj Finserv offers you benefits such as:
Low-interest rates: NBFCs are not affiliated with the Reserve Bank of India (RBI) and hence do not regulate under their reforms. Due to which they offer the lowest Home Loan interest rate than the banks, this can be a great opportunity for you to switch your loan from your current lender to an NBFC.
Minimal documentation for loan approval: Banks follow the old and traditional techniques for their after loan service, this includes their loan approval procedures which need a lot of documents to be submitted. Such is not the case with the NBFCs as they use modern techniques and loan approval procedure with minimal documents that reduce your document submission workload.
Low fees and charges: NBFCs offer Top Up Loans with lower processing fees and prepayment charges in comparison to the banks and other lenders.
Top Up Loans can be helpful for an individual to support them through the aftermath of Home Loans. NBFCs can help you get a great deal on Top Up Loans. You can also consider shifting your loan with Bajaj Finserv as they offer better and more flexible perks on Home Loans as well as Top Up Loans.